Germany’s Uhde is the preferred bidder for the contract to build an integrated propane dehydrogenation (PDH) and polypropylene (PP) complex near Port Said for Egyptian Propylene & Polypropylene Company (EPPC).

Final negotiations for the contract to build the estimated $400 million plant will be held in the second half of March, although an award is understood to be still some time off, according to sources close to the project.

Two other companies are bidding for the contract – Germany’s Linde and Japan’s Toyo Engineering Corporation. It is not clear whether EPPC plans to award the project on an engineering, procurement and construction (EPC) or cost-reimbursable basis.

The facility will comprise a 400,000-tonne-a-year PDH unit, which will feed a PP plant of the same capacity. Propane feedstock is to be supplied by Union Gas Derivative Company (UGDC), a joint venture of the UK’s BP and Italy’s Eni, and Egyptian Natural Gas Company.

EPPC is a 50:50 joint venture of the local Oriental Petrochemicals Company (OPC) and state-owned Egyptian Petrochemicals Holding Company (ECHEM – MEED 23:12:05).